Computer support for multi-jurisdictional investment

ABSTRACT

Machine and related manufacturer controlling multi-jurisdictional investment; a computer system arranged to receive information and locate said information into a memory, the information including investment specifications and pricing data for the financial product, the computer system further including: an input device for receiving the information and converting the information into signals; a program control to compute, from said signals, for calculating respective valuations of parts of investment in respective jurisdictions and a program control to trigger printing documentation, including said valuations, to carry out the implementation of the parts in the respective jurisdictions. In variations thereof, such as optimizing, separating, valuation, and execution are supported.

I. TECHNICAL FIELD

The technical field is computers and data processing systems. Dependingon the implementation, there is apparatus, a method for use and methodfor making, and corresponding products produced thereby, as well as datastructures, computer-readable media tangibly embodying programinstructions, manufactures, and necessary intermediates of theforegoing.

II. BACKGROUND ART

Financial products can be viewed as integral and of one jurisdiction.For example, an insurance policy is not normally viewed as separableinto parts in located different jurisdictions. Corresponding computersupport reflects this conventional view.

III. DISCLOSURE

Machine and related manufacturers controlling multi-jurisdictionalinvestment; a computer system arranged to receive information and locatesaid information into a memory, the information including investmentspecifications and pricing data for the financial product, the computersystem further including: an input device for receiving the informationand converting the information into signals; a program control tocompute, from said signals, for calculating respective valuations ofparts of investment in respective jurisdictions; and a program controlto trigger printing documentation, including said valuations, to carryout the implementation of the parts in the respective jurisdictions. Invariations thereof, such as optimizing, separating, valuation,execution, and are supported.

IV. BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 illustrates an overview of an embodiment

FIG. 2 illustrates an embodiment

FIG. 3 illustrates a flow chart for an embodiment

FIG. 4 illustrates a flow chart for an embodiment

FIG. 5 illustrates a continuation of the flow chart of FIG. 4.

FIG. 6 illustrates a continuation of the flow chart of FIG. 4.

FIG. 7 illustrates a flow chart for an embodiment.

FIG. 8 illustrates a continuation of the flow chart of FIG. 7.

FIG. 9 illustrates a continuation of the flow chart of FIG. 7.

FIG. 10 illustrates a continuation of the flow chart of FIG. 7.

FIG. 11 illustrates a continuation of the flow chart of FIG. 7.

FIG. 12 illustrates a continuation of the flow chart of FIG. 7.

FIG. 13 illustrates a flow chart for an embodiment.

FIG. 14 illustrates a continuation of the flow chart of FIG. 13.

FIG. 15 illustrates a continuation of the flow chart of FIG. 13.

FIG. 16 illustrates a continuation of the flow chart of FIG. 13.

FIG. 17 illustrates a continuation of the flow chart of FIG. 13.

FIG. 18 illustrates a continuation of the flow chart of FIG. 13.

FIG. 19 illustrates a flow chart for an embodiment.

FIG. 20 illustrates a continuation of the flow chart of FIG. 19.

FIG. 21 illustrates a continuation of the flow chart of FIG. 19.

FIG. 22 illustrates a continuation of the flow chart of FIG. 19.

FIG. 23 illustrates a continuation of the flow chart of FIG. 19.

FIG. 24 illustrates a continuation of the flow chart of FIG. 19.

FIG. 25 illustrates a flow chart for an embodiment.

FIG. 26 illustrates a flow chart for an embodiment.

FIG. 27 illustrates a flow chart for an embodiment.

V. MODES

The accompanying drawings illustrate embodiments intended to illustrateand exemplify in a teaching manner.

As used herein, the term “computer” generally refers to hardware orhardware in combination with one or more program(s), such as can beimplemented in software. Computer aspects can be implemented on generalpurpose computers or specialized devices, and can operate electrically,optically, or in any other fashion. A computer as used herein can beviewed as at least one computer having all functionality or as multiplecomputers with functionality separated to collectively cooperate tobring about the functionality. Logic flow can represent signalprocessing, such as digital data processing, communication, or asevident from the context hereinafter. Logic flow can be implemented indiscrete circuits. Computer-readable media, as used herein can compriseat least one of a RAM, a ROM, A disk, an ASIC, and a PROM. Industrialapplicability is clear from the description, and is also stated below.

By way of the following prophetic teaching, there is provided computersupport, as in a data processing system, for implementing parts of, orfrom, a financial product or instrument to accomplish certain financialobjectives. Financial objectives can include utilizing capital moreeffectively, taking advantage of different risk tolerances, improvingearnings, facilitating capital movement, funding employee benefits,reducing expenses and taxes, pre-funding capital needs, etc.Accomplishing financial objectives can involve a bifurcation(trifurcation, etc.) of the parts of the financial product, preferablyto place the parts into different national, regulatory, accounting, tax,etc., jurisdictions, to accomplish one or more financial objectives thatcould not be accomplished as effectively in only one jurisdiction. Thisis the meaning herein for “jurisdictions.”

Conceptually, this can involve, for example, a holding company (HCx),which, in a specific jurisdiction x, writes life insurance policies onthe lives of employees or other persons in which it has an insurableinterest. HCx then takes out a loan using the insurance policies ascollateral. Interest on a loan used to fund a business operation couldbe an expense deduction for tax purposes in jurisdiction x. In oneembodiment, death proceeds are moved to a subsidiary (ASy) withpotential future capital needs in jurisdiction y, where death benefitsmay be taxed more favorably.

Of course, this idea can be carried out with other particularjurisdictions, with other financial objectives, and with other financialproducts in making use of the general idea of utilizingmulti-jurisdictional advantages applied to implementing the financialproducts (e.g., annuities, endowments, disability income, othernon-insurance financial products or instruments, etc.) Financialobjectives can be for funding or pre-funding future capital needs,reducing expenses and taxes or any other financial objective that couldnot be accomplished as efficiently without this approach.

More particularly as a representative example, consider a CapitalFunding Insurance Program (CFIP). A corporation takes out life insuranceon the lives of certain employees, retirees or other persons in which ithas an insurable interest. The corporation is the owner, premium payerand beneficiary of the insurance policies. CFIP can be used as atax-favored funding vehicle for long-term liabilities, or to generate anefficient return for pre-funding future capital needs.

In jurisdiction x, CFIP can be used in a twofold manner. First,jurisdiction x Holding Company (HCx) buys CFIP and contributes thepolicies or the net amount at risk death benefits to an activesubsidiary (ASy) in jurisdiction y, where death benefits aretax-favored, to build long-term capital in the subsidiary at a lowercost, while possibly repatriating on a favorable tax basis.

Second, when cash is desired by HCx for its use, the policies can beused as collateral for loans, either bank loans or policy loans, to fundthis need. Loan interest on these loans may be tax-deductible by HCx.

One need, for example, is to generate cash flow for HCx's pension plan;additional benefits, at least from an accounting standpoint, can occur.This can be carried out, for example, by creating a contract between HCxand the pension plan, which commits HCx to use dividends from ASy,arising from ASy's receipt of death proceeds, as contributions to thepension plan. Alternatively, the dividends could be used to help fundother post retirement benefits.

In a representative embodiment, HCx insures, with whole life insurance,the lives of a group of employees, retirees or other persons in which ithas an insurable interest. HCx may pay the premiums and is owner andbeneficiary of the policies.

If HCx borrows funds for a legitimate business purpose(s) from anunaffiliated lender, secured by the policy cash values as collateral,HCx can use the collateral on a favorable basis. Some examples oflegitimate business purpose are to pay HCx operating costs, pay downother debt obtained for HCx, or make HCx capital investments.

HCx then may contribute the policy to ASy, and ASy holds the policyuntil death. ASy is not liable on the loan; however, the cash valuesremain as security for the loan. The cash value is recorded as an assetof ASy, producing an immediate capital increase in ASy, and any futureincreases in cash value are recorded on ASy's accounts. HCx may continueto borrow against any cash value increases. At death, ASy receives theproceeds on a tax-favored basis.

The loan to HCx becomes due and is paid by HCx. Should HCx then needfunds, and ASy has excess funds, then ASy may dividend all or a portionof the proceeds to HCx.

In another embodiment, HCx insures, with whole life insurance, the livesof a group of employees, and, perhaps, retirees or other person's inwhich it has an insurable interest. HCx pays the premiums and is theowner of the policies.

HCx designates as beneficiaries, itself for a portion of the deathbenefit, and ASy, which will need long term capital at some point, forthe remainder.

Again, HCx can use the policy as collateral for loans to pay itsoperating costs, pay down other debt obtained for local uses, etc. Theloan could be a standard policy loan, which is “non-recourse” to HCx andprovides that the insurer can apply the policy cash value or its portionof the death proceeds to pay the loan should the loan ever exceed thecash value or when the policy matures. HCx pays the interest on theloans.

At death, HCx receives its portion of the proceeds, less the loanbalance, as the insurer applies HCx's portion to pay the loan. Thesubsidiary receives the excess of the face amount over HCx's portion.Should HCx then be in need of funds and ASy has excess funds, then ASymay dividend all or a portion of its proceeds to HCx.

In sum, while the foregoing and hereinafter offers an advance in thecontext of a structured transaction system, aspects can extend tofacilitating operation of an electrical communication system, enablingmachine or manufacture coordination in different jurisdictions. Thus,computer support and aspects thereof are arranged and configured tocarry out one or more aspects of the transactions, (e.g., documentation,tracking, valuation, tax handling, accounting, etc.) involving andseparating a financial product (e.g., comprising an investment, rights,consideration, benefits, etc., depending on the context) and its variousparts, in different jurisdictions. This multi-jurisdictional structureis coordinated to accomplish a financial objective that could not beaccomplished as efficiently without this approach.

The computer support can handle inputting data on the policies andinsureds, analyzing the data to determine the best approach to themulti-jurisdictional use of the parts of the policies and/or rightsand/or benefits or responsibilities associated therewith, etc.,generating documentation, producing illustrations and reports,contracts, accounting and accounting results, particularly for the partsand in correspondence to the jurisdictions, consolidated data, etc.Preferably there are multi-jurisdictional computer systems for access,and the human steps facilitating the entire computer-assisted system canspan even more jurisdictions. In view of the complexity of thetransactions associated with this innovation, it may be best toestablish standardization, especially with data standards. Thus, anembodiment contemplates data standards carried out from data templatesand generally standardized documentation (with customization as may bedesired for individual transactions).

Indeed, computer support for a multi-jurisdictional approach can reachto many related activities, including optimizing, product fulfillment,underwriting, optimizing pay outs, communications with all involvedparties (including providers, intermediaries, etc.), tracking, billingand transfers (including electronic funds transfers), protectedcommunications by encryption, records management, real time and batchprocessing utilizing distributed networks and Internet communications,product partitioning and determinations related thereto, as well aspackaging benefits and parts thereof, budgeting, claims processing,reporting, and coding to track aspects of this multi-jurisdictionalapproach, partitioning optimization and analysis, and even business tobusiness referrals for associated products and services.

In accordance therewith, there is an apparatus (computer system(s)),methods of making and using the apparatus, and products (documentationand other output) as well as necessary intermediates (e.g., data,documents, etc.), as discussed more with regard to the Figures.

FIG. 1 illustrates an overview of an embodiment with a graphicrepresentation of transactions for implementing financial objectives,using parts of a financial product and placing such parts inmulti-jurisdictions. This illustration shows the nature of thetransaction that gives rise to need for the computer system,standardized data specifications, template input, and other aspectsdiscussed herein.

Capital management as a corporate activity can utilize investments, orfinancial products, comprising insurance, finance, and the like. Ascorporate groups becoming global in structure, contractual exposures(e.g., with respect to benefit payments to individuals or to groups ofindividuals) can be handled in a multi-jurisdictional manner. Insuranceor reinsurance contracts obtained by corporations in such groups canprovide actual cash flows upon the occurrence of certain contingentevents specified in the contracts. A contingent event can, for example,be death, disability, survivorship, or the like. As an overview, meansis provided for (1) meeting capital needs in an efficient manner, (2)utilizing multi-jurisdictional transactions as made possible by globalstructures, and (3) bifurcating (trifurcating, etc.) financial products,for example insurance products, into parts and placing them in multiplejurisdictions.

By way of an example, a First Party 2 defines one or more FinancialObjectives 4. Jurisdictional Information 6 relevant to the globalstructure of First Party 2 can be analyzed. In a transaction with SecondParty 14, First Party 2 provides Specifications and Pricing Data 8 for afinancial product and further provides data regarding associatedContractual Exposures 10 for the financial product. In turn Second Party14 can tailor or develop the Financial Product 12 so as to be suited tothe needs of First Party 2. First Party 2 facilitates separating partsof Financial Product 12 into Financial Product Part 1, Financial ProductPart 2, and Financial Product Part 3, and places them in jurisdiction A,jurisdiction B and jurisdiction C, respectively, in transactions withThird Party 22, Fourth Party 24, and Fifth Party 26. Such transactionsallow First Party 2 to meet Financial Objectives 4 as mentionedpreviously. Any of the foregoing regarding Financial Product 12 beingseparated into at least two parts and placed in at least twojurisdictions in transactions with more than one party, is handled withcomputer support.

Thus, in a broad sense, the Computer System 52 is prescribed by theoverall transaction so as to encompass separately, and in combination,the facets of the transaction, as well as enable ongoing support afterplacement of the parts. Accordingly, the methods for making the computersystem, using the computer system, and components thereof are prescribedby separate and collective aspects of the transaction (in the nature ofimplementing financial objectives in multiple jurisdictions between aFirst Party 2 (a corporate entity) and other parties (some related andother non-related entities). These transactions enable First Party 2 toimplement Financial Objectives 4, utilize Jurisdictional Information 6using parts of Financial Product 12 with other parties. Computerinterrelations and system-to-system communications are also embodimentsfor separate and collective consideration.

FIG. 2 illustrates an embodiment of aspects of one manner ofequivalent-functionality approaches to multi-jurisdictional capitalmanagement via a computer system. Such representative manner of computersystem is provided in graphic presentation. Consider Computer System 52that can be adapted to handle one or more of the following: (i)manipulates digital signals of (a) Input Data 54 pertaining to theFinancial Objectives 4, Multi-jurisdictional Information 6,Specifications and Pricing Data 8, Contractual Exposures 10, andFinancial Product 12, (b) model documents (with so as to define datastandards) of Stored Model Consolidated Documents 74, Stored ModelJurisdictional Documents 76 and Stored Other Documents 78, and (c)previously encoded and processed data Stored Data Files 72; (ii) digitalprocessing of these signals to produce output (discussed further below),but for example, analyses of the data under one or more assumptions;(iii) documents of results Jurisdictional Financial Analysis Output 84,Consolidated Financial Analysis Output 86, and Other Financial AnalysisOutput 88; and (iv) illustrates selected results in ProcessedJurisdictional Model Documents 90, Processed Consolidated ModelDocuments 92, and Processed Other Documents 94.

Computer System 52 is intended to be carried out in any number of ways,but in a general sense there can be a Digital Electronic Computer (e.g.,an IBM Personal Computer) with Central Processor 58 (e.g., an Intelseries processor), a Memory System 60 (such as a hard drive), an InputDevice 56 (keyboard, mouse, modem, or the like), and one or more outputdevices, here shown as Output Device 80 and Output Device 82 (e.g., aHewlett Packard printer, a Dell monitor, a modem, or other such outputdevice). The Memory System 60 can include an operating system LogicMeans 62 to run the Computer System 52 and facilitate applicationssoftware. For example, the operating system could be Microsoft XPProfessional that would allow use of (a) its applications software, suchas EXCEL, ACCESS, and WORD, and (b) actuarial pricing systems compatiblewith Microsoft XP Professional such as AXIS, TAS, or PROPHET. The MemorySystem 60 can store other program(s), such as the foregoing, i.e.: (a) aWord Processing Program 68 such as Microsoft Word to processtransactions data, assumptions, and results, (b) a Data ManagementProgram 64 such as Microsoft EXCEL or ACCESS to manage and evaluate datafiles, (c) an Actuarial Pricing System 70 such as AXIS, TAS or PROPHETthat access data files and assumptions and generates pricing results,and (d) a Standard Data Specifications & Template such as some hardcoded or programmed application that translate one data file format tothe suitable data file format. The Input Device 56 such as a keyboardreceives Input Data 54 either manually or electronically, depending onthe embodiment preferred for a particular application hereof. OutputDevice 80 and Output Device 82, such as a printer or a CD drive; producesuch documents, in generally standardized manner, as the JurisdictionalFinancial Analysis Output 84, Consolidated Financial Analysis Output 86,and Other Financial Analysis Output 88. These financial analysis output,including the input data, processed results, statistical and financialassumptions, and other relevant information as well as processing logic,is normally shared via a network of computers as indicated in FIG. 25(Computer System 52, and computer systems, Blocks 802-820, of partiesinvolved such as First Party, Second Party, Third Party, Tax Advisors,Accounting Advisors, Marketing Advisors, Legal Advisors, InternetNetwork, Other Consultants and Regulatory Bodies) and technicaldiscussions occur until desired results are processed and illustratedformally in Processed Jurisdictional Model Documents 90, ProcessedConsolidated Model Documents 92, Processed Other Documents 94.

A computer-readable media can tangibly embody a program of instructionsexecutable by the Computer 58 to perform the step of initiating aninitial placement of the parts of a financial product in respectivejurisdictions using data standardized for input by at least onecomputer-generated template and for output by standardized documentationobtained from computer-accessible memory. Similarly, a computer-readablemedia can tangibly embody a program of instructions executable by theComputer 58 to perform the steps of: separating a financial product intoparts in respective jurisdictions; calculating, responsive to inputjurisdictional data, respective valuations of the parts; and signalingfor placement of the parts including the valuations in the respectivejurisdictions. Either case can further include the steps of: loadingaccounting data for transaction openings and closings of the respectiveparts; storing historical results for the parts in the respectivejurisdictions; and storing consolidated results for the financialproduct Any aspect of computer support can be so embodied, and again,the media of can comprise at least one of a RAM, a ROM, a disk, an ASIC,and a PROM.

Likewise, Memory System 60, or other computer-readable media cantangibly hold data (structure) for access by such application programbeing executed by any or all of the Computer System 52.

Of course depending on the financial product or investment that is atissue, the data requirements will change correspondingly. Thus,representatively, input data can include: one or more financialobjectives, in measurable terms; jurisdictional information relevant tothe global structure of First Party 2, such information that may help inidentifying other parties (related or non-related) in the jurisdictionsof interest for the parts; specifications data and pricing data for thefinancial product, including for example benefit provisions, risksparameters, rates of decrement, financial assumptions, and the like;characteristics of the risks associated with the contractual exposures;and transactions data, for example including legal data on parties'involved, initial placement data, subsequent activities data, andrelated documentation, as well as reporting requirements, contracts,fees, etc.

Similarly, depending on the financial product or investment that is atissue, the data requirements will change correspondingly. Thus,representatively, processed data can include: jurisdictional accountingand reports, consolidated accounting, reports, other reporting forjurisdictional or party requirements, and comparative, year-to-date andhistorical versions of the above data.

FIG. 3 illustrates a flow chart for an embodiment with an illustrativeflowchart exemplifying logic of the logic means (e.g., program withcontrols) for controlling the computer system. Regarding overalloperational processes for Computer System 52, note Logic Means 102 canallow for two pathways, one for processing data, using Title Screen DataProcessing System 104, and the other for processing model documents,using Word Processing Program 68.

Title Screen Data Processing System 104 can be a coded or programmed forEXCEL application or such application software that allows processing ofnumbers and logical evaluations. Starting with Main Menu 106 (thatallows for the processing of information), the system allows for thecreation of new data file (Block 112); update of existing data file(Block 108, retrieval of data file and Block 110, identification of datafile); then display (Block 114) and input/edit (Block 116) of data form.The Standard Data Specifications and Template 66 ensures data files aresuitable and the Data Management Program 64 ensures efficient datafiling. Using Actuarial Pricing system 70, the system allows for theprocessing (Block 118) of these data files. This pricing systemgenerates multiple scenario results to allow maximization of desiredfinancial objectives and effective use of multi-jurisdictional placementof parts of the financial product Using Data Management Program 64, datainformation is printed (Block 120), data form (Block 122) is stored, anddata file (Block 72) is stored. Using Word Processing Program 68, modelconsolidated documents, model jurisdictional documents and otherdocuments are stored as per Blocks 7478. Data files are maintained perparty for the associated part of the financial product and theassociated jurisdiction. Data files are also kept historically and percontract, from its effective date. Data storage is physically in thecomputer or in a computer readable file kept offsite. Jurisdictionalrequirements (e.g., as used herein, including any jurisdictionalconsiderations) are also taken into considerations. As defined in detailabove, data includes financial objectives, jurisdictional information,specifications and pricing data to the financial product,characteristics of risks associated with contractual exposures anddetail transactions data.

Word Processing Program 68 allows for creating blank model documents(Blocks 74-78, consolidated documents, jurisdictional documents andother documents), editing existing model documents for any updates(Block 126), printing such results (Block 128) and storing differentversions of model documents (Block 130). Model documents showing currentresults and usually comparative, year-to-date and historical results arealso produced regularly. Model documents per regular accounting periodsshowing consolidated results, jurisdictional results and other relevantresults are maintained historically per contract

The Logic Means 102 allows for continuing processing in Blocks 104, 106and 132 (thru the title screen, main menu and the logic to continue withthe word processing program) as well as for finalization of the processthru Blocks 124 and 132 (through a quit routine in the title screen andthe logic to quit with the word processing program).

FIGS. 4-6 collectively illustrate a flow chart for an embodimentrepresenting data input computational and other logic, and data outputof the logic means for controlling the computer system. Input data isreceived during the early stages of preparation for the transactionsuntil the transactions are placed. The process includes InputtingFinancial Objectives of a First Party 202, Inputting JurisdictionalInformation 204, Inputting Specifications for a Financial Product 206,and Inputting Pricing Data for a Financial Product 208. An evaluation ofthe financial objectives, the jurisdictional information, thespecifications, and the pricing data for a financial product allows forSeparating a Financial Product into Parts for Placing in RespectiveJurisdictions 210. The activity separating into parts is an iterativeprocess and is guided by the process Calculating Respective Valuationsof Parts in Respective Jurisdictions 212. Next there is GeneratingDocumentation to Carry out the Implementation, Including InitialPlacement Documentation and Periodic Documentation 214. Further stepscan include (i) Producing an Accounting for a First Party Buying theFinancial Product from a Second Party 216 (the development of thefinancial, using the specifications and pricing data received, wasaccomplished in earlier steps), and (ii) Producing an Accounting of theFirst Party Carrying Out the Implementation Using the Parts of theFinancial Product in the Respective Jurisdictions, in RespectiveFinancial Transactions with Respective Other Parties to AccomplishFinancial Objectives 218.

The computer system maintains a copy in memory of all data used in thetransactions; that is, the input data, the financial product and theparts of the financial product, the valuations, the documentation tocarry out the implementation and the accounting for all the activitiesto accomplish the financial objectives by the first party with thesecond party and all other parties. A copy of the financial results isstored; financial results (a) per other party for respective part of thefinancial product and per respective jurisdiction, and (b) on aconsolidated basis. The financial results are also kept per regular timeperiod, per year-to-date period, per comparative time periods andhistorically. Storage off-site is also maintained. Blocks 220-226, and230-236 allow for the storage of information. This stored informationincludes financial objectives, jurisdictional information, productspecifications, pricing data, financial product and separated parts,valuations, documentation, accounting data and other reports.

FIGS. 7-12 collectively illustrate a flowchart of the processes in thedata input, computational and other logic, and the data output of thelogic means for controlling the computer system, with regard toimplementing parts of, or from, a financial product or instrument toaccomplish certain financial objectives, such as utilizing capital moreeffectively, taking advantage of different risk tolerances, improvingearnings, facilitating capital movement, funding employee benefits,reducing expenses and taxes, pre-funding capital needs, etc.Accomplishing financial objectives can involve a separation of the partsof the financial product, preferably to place the parts into differentnational, regulatory, accounting, tax, etc., jurisdictions, toaccomplish one or more financial objectives that could not beaccomplished as effectively in only one jurisdiction.

This can involve, for example, a holding company (HCx), which, in aspecific jurisdiction x, writes life insurance policies on the lives ofemployees or other persons in which it has an insurable interest HCxthen takes out a loan using the insurance policies as collateral.Interest on a loan used to fund a business operation could be an expensededuction for tax purposes in jurisdiction x. In one embodiment, deathproceeds are moved to a subsidiary (ASy) with potential future capitalneeds in jurisdiction y, where death benefits may be taxed morefavorably, meaning taxed less than the tax rate in jurisdiction x.

Of course, this idea can be carried out with other particularjurisdictions, with other financial objectives, and with other financialproducts in making use of the general idea of utilizingmulti-jurisdictional advantages applied to implementing the financialproducts (e.g., annuities, endowments, disability income, othernon-insurance financial products or instruments, etc.) Financialobjectives can be for funding or pre-funding future capital needs,reducing expenses and taxes or any other financial objective that couldnot be accomplished as efficiently without this approach.

More particularly as a representative example, consider a CapitalFunding Insurance Program (CFIP). A corporation takes out life insuranceon the lives of certain employees, retirees or other persons in which ithas an insurable interest. The corporation is the owner, premium payerand beneficiary of the insurance policies. CFIP can be used as atax-favored funding vehicle for long-term liabilities, or to generate anefficient return for pre-funding future capital needs.

In jurisdiction x, CFIP can be used in a twofold manner. First,jurisdiction x Holding Company (HCx) buys CFIP and contributes thepolicies or the net amount at risk death benefits to an activesubsidiary (ASy) in jurisdiction y, where death benefits aretax-favored, to build long-term capital in the subsidiary at a lowercost, while possibly repatriating on a favorable tax basis. Second, whencash is desired by HCx for its use, the policies can be used ascollateral for loans, either bank loans or policy loans, to fund thisneed. Loan interest on these loans may be tax-deductible by HCx.

One aspect, for example, is to generate cash flow for HCx's pensionplan; additional benefits, at least from an accounting standpoint, canoccur. This can be carried out, for example, by creating a contractbetween HCx and the pension plan, which commits HCx to use dividendsfrom ASy, arising from ASy's receipt of death proceeds, as contributionsto the pension plan. Alternatively, the dividends could be used to helpfund other post retirement benefits.

Viewed broadly now to keep context, the computer support (all aspects,including illustration, valuation, pricing, tailoring, separation,placement and related support, documentation, tracking, tax handling,accounting, etc.) relates to separating an investment (e.g., contractrights, consideration, benefits and other provisions) into parts placedin different jurisdictions to realize advantages thereof. Thismulti-jurisdictional structure is coordinated to accomplish a financialobjective that could not be accomplished as efficiently without thisapproach. To give a more specific example, the support can includehandling inputting data on insurance policies and insureds, analyzingthe data to determine or aid in determining the best approach to themulti-jurisdictional use of the parts of the policies and/or rightsand/or benefits or responsibilities associated therewith, etc.,generating documentation, producing illustrations and reports,contracts, accounting and accounting results, particularly for the partsand in correspondence to the jurisdictions, consolidated data, etc.There can be multi-jurisdictional computer systems or systems thatcooperate for access, and human steps facilitating the computer-assistedsystem so as to span even more jurisdictions. In view of the potentialcomplexity of the transactions, establishing standardization with datastandards facilitates efficient cooperation. The data standards can becarried out from data templates and generally standardized documentation(with customization as may be desired for individual transactions).

Indeed, computer support can, as may be desired, reach to relatedactivities, including optimizing product fulfillment, underwriting,optimizing pay outs, communications with all involved parties (includingproviders, intermediaries, etc.), tracking, billing and transfers(including electronic funds transfers), protected communications byencryption, records management, real time and batch processing utilizingdistributed networks and Internet communications, product partitioningand determinations related thereto, as well as packaging benefits andparts thereof, budgeting, claims processing, reporting, and coding totrack aspects of this multi-jurisdictional approach, partitioningoptimization and analysis, and even business to business referrals forassociated products and services.

Return now to the aforesaid FIGS. 7-12 relating to inputting financialobjectives of the first party, which can involve Selecting (Block 310)at least One Objective from a Group of Pre-funding Capital (Block 302),Funding Benefit Plan (Block 304), Minimizing Expenses (Block 306) andMaximizing Earnings (Block 308) whilst keeping in mind receivedjurisdictional information (Block 204). Receiving Specifications for aFinancial Product 206 further involves Receiving of RespectiveCharacteristics of Risks Associated with Contractual Exposures 312,Underwriting of Said Contractual Exposures 314, Optimizing ProductDesign and Pay-outs 316, Formulating Pricing of the Financial ProductBased on Associated Risks 318 and finally Defining the Financial Product(Block 320) from amongst the choices of insurance policies, lifeinsurance policies, health insurance policies, annuity policies,corporate-owned life insurance policies and maybe even non-insuranceproducts. A further step to defining the financial product involvesEstablishing Data Standards (Block 390) for Said Specifications andDefining Data Templates (Block 392) for Respective Characteristics ofRisks Associated with Contractual Exposures for Insurance Products. Withthe financial objectives, the jurisdictional information and thespecifications for a financial product, Inputting Pricing Data for aFinancial Product 208, completes the data input.

With the completion of data input, the next steps are selectionprocesses specifically pertaining to jurisdictions that providefavorable environment for (i) financial products, and (ii)implementation of placing parts of a financial product into respectivejurisdictions. The selections need not necessarily be done in aparticular order but some selections are related to others. One, afinancial product is selected in Opting (Block 332) on a FinancialProduct in Selected Jurisdiction where such Product can be Issued withMinimal Regulatory Restriction; the choices being such jurisdiction withminimum regulatory restriction on insurance policies (Block 322), lifeinsurance policies (Block 324), health insurance policies (Block 326),annuity policies (Block 328), or non-insurance product (Block 330).Then, among these jurisdictions, another selection is done for ajurisdiction to minimize (Block 334) regulatory capital requirement forthe selected financial product Two, a selection is made of thejurisdiction (Block 348) where at least a portion of loan interest istreated as an expense deduction. Preliminary to this jurisdictionselection, a selection is made on the usage of part of said financialproduct, the insurance policy value—as loan collateral (Block 354) orsimply the exercise (Block 352) of a policy loan provision. Three, anoption is selected on the jurisdiction (Block 360) with an advantageoustax treatment of at least a portion of contingent benefits; theselections are the jurisdiction (Block 356) where the tax rate is lowerthan the tax rate of the jurisdiction where loan interest is adeduction; and the jurisdiction (Block 358) where there is tax deferral.The situation also calls for an excess of insurance policy face amountsover policy values. Other options are Blocks 336-340 (choices are notax, lower tax rate than interest deduction jurisdiction and taxdeferral for portions of contingent benefit. Four, a selection of ajurisdiction (Block 344) is made where at least a portion of the policyvalue build up is tax deferred. The second selection on the usage ofpart of the financial product is Capitalizing, by a Contribution of atleast Respective Portions of Insurance Policies, One of Said PartiesBeing a Member of a Group of Related Entity and Non-related Entity, inSaid One of the Jurisdictions 346. In summary, parts of the financialproduct used are insurance policy values, and excess of insurance policyface amounts over policy values; used for making loans orcapitalization; and in selected jurisdictions where loan interest is anexpense deduction; there is minimum regulatory restriction in issuanceof policies; there is minimum regulatory capital requirement for afinancial product; there is tax deferral of policy value build-up;portions of contingent benefits are tax deferred or taxed at lower ratesor not taxed.

Any and all of the selection processes in the above paragraphs can beused to provide input to the Separating a Financial Product into Partsfor Placing in Respective Jurisdictions 210. The next steps areCalculating Respective Valuations of Parts of Financial Product inRespective Jurisdictions 212, then Generating Documentation to Carry-outthe Implementation 214 and finally Producing an Accounting for a FirstParty Buying the Financial Product from a Second Party 216 and Producingan Accounting for the First Party Carrying-out the Implementation Usingthe Parts of the Financial Product in Respective Jurisdictions inRespective Financial Transactions with Respective Other Parties 218.

The succeeding processes allow for Electronically Communicating to SaidParties (Block 364) Encrypted Billing and Transfers, includingelectronic Transfers and for Electronically Communicating over anInternet Network, thereby allowing for speed and accuracy in ProducingAccounting (Block 216-218).

Further to Generating Documentation to Carry-out the Implementation(Block 214), are Generating Historical Records for Said Parts, forValuations, Balance Sheet Activity and Profit & Loss Statements (Block368); Generating Standardized Documentation 370; Enabling Customizationof Said Standardized Documentation for Individual Transactions 372;Generating Illustrations 374; and Generating Contracts 376. Blocks368-378 complete the documentation processes.

Further to Calculating (Block 212) Respective Valuations of Parts arethree more calculating processes (Block 378-382) and subsequent trackingprocesses (Blocks 384-388). The Calculating processes are of Valuationsof the Parts for Respective Initial Placements (Block 378); of PeriodicRespective Valuations for the Parts after the Initial Placements (Block380); and of Respective Valuations for the Parts upon Occurrence of aContingent Event (Block 382). The Tracking processes are of SaidRespective Valuations after the Initial Placements (Block 384); for SaidParts, Balance Sheet Activity and Profit & Loss Statements; and ofConsolidated Balance Sheets and Profit & Loss Statements (Block 388).

All input data and data resulting from the logic processes are stored inthe computer with steps indicated in Blocks 220-226, 228, 230-236,394-396, 398, 400-452. These include input data (Blocks 220-226, 404);selected options on jurisdictions (Blocks 398, 438-452); parts of afinancial product (Block 298); documentations (Block 232, 406-414);accounting (Block 234-236, 400-402); valuations (Block 230, 416-426);data templates and standards (Block 394-396); and other intermediateresults (Block 428-436).

FIGS. 13-18 collectively illustrates a flow chart representing datainput, computational and other logic, and the data output of the logicmeans for controlling the computer system as applied to loancollateralization with policy contribution to a subsidiary.

In a first embodiment, HCx insures, with whole life insurance, the livesof a group of employees, retirees or other persons in which it has aninsurable interest. HCx may pay the premiums and is owner andbeneficiary of the policies.

If HCx borrows funds for a legitimate business purpose(s) from anunaffiliated lender, secured by the policy cash values as collateral,HCx can use the collateral on a favorable basis. Some examples oflegitimate business purpose are to pay HCx operating costs, pay downother debt obtained for HCx, or make HCx capital investments. HCx thenmay contribute the policy to ASy, and ASy holds the policy until death.ASy is not liable on the loan; however, the cash values remain assecurity for the loan. The cash value is recorded as an asset of ASy,producing an immediate capital increase in ASy, and any future increasesin cash value are recorded on ASy's accounts. HCx may continue to borrowagainst any cash value increases. At death, ASy receives the proceeds ona tax-favored basis. The loan to HCx becomes due and is paid by HCx.Should HCx then need funds, and ASy has excess funds, then ASy maydividend all or a portion of the proceeds to HCx.

Return now to the aforesaid FIGS. 13-18 relating to inputting financialobjectives of the first party whilst keeping in mind receivedjurisdictional information (Block 204). In this particular embodiment aselection of financial objective has been made via Selecting (Block 614)Pre-funding Objective from a Group of Pre-funding Capital (Block 302),Funding Benefit Plan (Block 304), Minimizing Expenses (Block 306) andMaximizing Earnings (Block 308). Receiving Specifications for aFinancial Product 206 further involves Receiving of RespectiveCharacteristics of Risks Associated with Contractual Exposures 312,Underwriting of Said Contractual Exposures 314, Optimizing ProductDesign and Pay-outs 316, Formulating Pricing of the Financial ProductBased on Associated Risks 318 and note a process of making a selectionon the financial product by Defining the Financial Product (Block 602)as Corporate-Owned life Insurance Policies. A further step to definingthe financial product involves Establishing Data Standards (Block 390)for Said Specifications and Defining Data Templates (Block 392) forRespective Characteristics of Risks Associated with ContractualExposures for Insurance Products. With the financial objectives, thejurisdictional information and the specifications for a financialproduct, Inputting Pricing Data for a Financial Product 208, completesthe data input.

With the completion of data input, the next steps are selectionprocesses specifically pertaining to jurisdictions that providefavorable environment for (i) financial products, and (ii)implementation of placing parts of a financial product into respectivejurisdictions. The selections need not necessarily be done in aparticular order but some selections are related to others. In thisembodiment, one, the financial product is selected as life insurancepolicies in Opting (Block 604) on Life Insurance Policies in SelectedJurisdiction where such Product can be issued with Minimal RegulatoryRestriction; the choices being such jurisdiction with minimum regulatoryrestriction on insurance policies (Block 322), life insurance policies(Block 324), health insurance policies (Block 326), annuity policies(Block 328), or non-insurance product (Block 330). Then, among thesejurisdictions, another selection is done for a jurisdiction to minimize(Block 334) regulatory capital requirement for the selected financialproduct. Two, a selection is made of the jurisdiction (Block 348) whereat least a portion of loan interest is treated as an expense deduction.Preliminary to this jurisdiction selection, a selection of Opting (Block610) on Collateralizing Loans with Respective Policy Values is made fromthe alternatives of, the insurance policy value—as loan collateral(Block 354) or simply the exercise (Block 352) of a policy loanprovision. Selection three as follows is dropped as a process in thisparticular embodiment. An option is selected on the jurisdiction (Block360) with an advantageous tax treatment of at least a portion ofcontingent benefits; the selections are the jurisdiction (Block 356)where the tax rate is lower than the tax rate of the jurisdiction whereloan interest is a deduction; and the jurisdiction (Block 358) wherethere is tax deferral. The situation also calls for an excess ofinsurance policy face amounts over policy values. In this embodiment, aselection on other options for tax treatment of portions of contingentbenefit has been made in Block 606, Opting on at least One of saidJurisdictions where at least a Portion of contingent Benefits is notTaxed from amongst Blocks 336-340 (choices are no tax, lower tax ratethan interest deduction jurisdiction and tax deferral for portions ofcontingent benefit. Four, a selection of a jurisdiction (Block 344) ismade where at least a portion of the policy value build up is taxdeferred. The second selection on the usage of part of the financialproduct is Capitalizing, by a Contribution of at least RespectivePortions of Insurance Policies, One of Said Parties, a Related Entity,in Said One of the Jurisdictions 608, a selection of a related entitybeing made in this embodiment. In summary, parts of the financialproduct used are insurance policy values, and excess of insurance policyface amounts over policy values; used for making loans orcapitalization; and in selected jurisdictions where loan interest is anexpense deduction; there is minimum regulatory restriction in issuanceof policies; there is minimum regulatory capital requirement for afinancial product; there is tax deferral of policy value build-up;portions of contingent benefits are tax deferred or taxed at lower ratesor not taxed. In this embodiment the above selections are made in Block612.

In FIGS. 13-18, similarly as in FIGS. 7-12, any and all of the selectionprocesses in the above paragraphs can be used to provide input to theSeparating a Financial Product into Parts for Placing in RespectiveJurisdictions 210. The next steps are Calculating Respective Valuationsof Parts of Financial Product in Respective Jurisdictions 212, thenGenerating Documentation to Carry-out the Implementation 214 and finallyProducing an Accounting for a First Party Buying the Financial Productfrom a Second Party 216 and Producing an Accounting for the First PartyCarrying-out the Implementation Using the Parts of the Financial Productin Respective Jurisdictions in Respective Financial Transactions withRespective Other Parties 218.

The succeeding processes allow for Electronically Communicating to SaidParties (Block 364) Encrypted Billing and Transfers, includingelectronic Transfers and for Electronically Communicating over anInternet Network, thereby allowing for speed and accuracy in ProducingAccounting (Block 216-218).

Further to Generating Documentation to Carry-out the Implementation(Block 214), are Generating Historical Records for Said Parts, forValuations, Balance Sheet Activity and Profit & Loss Statements (Block368); Generating Standardized Documentation 370; Enabling Customizationof Said Standardized Documentation for Individual Transactions 372;Generating Illustrations 374; and Generating Contracts 376. Blocks368-378 complete the documentation processes.

Further to Calculating (Block 212) Respective Valuations of Parts arethree more calculating processes (Block 378-382) and subsequent trackingprocesses (Blocks 384-388). The Calculating processes are of Valuationsof the Parts for Respective Initial Placements (Block 378); of PeriodicRespective Valuations for the Parts after the Initial Placements (Block380); and of Respective Valuations for the Parts upon Occurrence of aContingent Event (Block 382). The Tracking processes are of SaidRespective Valuations after the Initial Placements (Block 384); for SaidParts, Balance Sheet Activity and Profit & Loss Statements; and ofConsolidated Balance Sheets and Profit & Loss Statements (Block 388).

All input data and data resulting from the logic processes are stored inthe computer with steps indicated in Blocks 220-226, 228,230-236,394-396, 398, 400-452. These include input data (Blocks 220-226, 404);selected options on jurisdictions (Blocks 398, 438-452); parts of afinancial product (Block 298); documentations (Block 232, 406-414);accounting (Block 234-236, 400-402); valuations (Block 230, 416-426);data templates and standards (Block 394-396); and other intermediateresults (Block 428-436). Note that documentation and accountings can beviewed as products produced by the process of the computer.

FIGS. 19-24 collectively illustrate a flowchart representing data input,computational and other logic, and the data output of the logic meansfor controlling the computer system as applied to exercise of the policyloan provision with capitalization of a subsidiary by the excess of thepolicy face amount over the policy value.

In this embodiment, HCx insures, with whole life insurance, the lives ofa group of employees, and, perhaps, retirees or other person's in whichit has an insurable interest. HCx pays the premiums and is the owner ofthe policies. HCx designates as beneficiaries, itself for a portion ofthe death benefit, and ASy, which will need long term capital at somepoint, for the remainder. Again, HCx can use the policy as collateralfor loans to pay its operating costs, pay down other debt obtained forlocal uses, etc. The loan could be a standard policy loan, which is“non-recourse” to HCx and provides that the insurer can apply the policycash value or its portion of the death proceeds to pay the loan shouldthe loan ever exceed the cash value or when the policy matures. HCx paysthe interest on the loans. At death, HCx receives its portion of theproceeds, less the loan balance, as the insurer applies HCx's portion topay the loan. The subsidiary receives the excess of the face amount overHCx's portion. Should HCx then be in need of funds and ASy has excessfunds, then ASy may dividend all or a portion of its proceeds to HCx.

Return now to the aforesaid FIGS. 19-24 relating to inputting financialobjectives of the first party whilst keeping in mind receivedjurisdictional information (Block 204). In this particular embodiment aselection of financial objective has been made via Selecting (Block 614)Pre-funding Objective from a Group of Pre-funding Capital (Block 302),Funding Benefit Plan (Block 304), Minimizing Expenses (Block 306) andMaximizing Earnings (Block 308). Receiving Specifications for aFinancial Product 206 further involves Receiving of RespectiveCharacteristics of Risks Associated with Contractual Exposures 312,Underwriting of Said Contractual Exposures 314, Optimizing ProductDesign and Pay-outs 316, Formulating Pricing of the Financial ProductBased on Associated Risks 318 and note a process of making a selectionon the financial product by Defining the Financial Product (Block 602)as Corporate-Owned life Insurance Policies. A further step to definingthe financial product involves Establishing Data Standards (Block 390)for Said Specifications and Defining Data Templates (Block 392) forRespective Characteristics of Risks Associated with ContractualExposures for Insurance Products. With the financial objectives, thejurisdictional information and the specifications for a financialproduct, Inputting Pricing Data for a Financial Product 208, completesthe data input.

With the completion of data input, the next steps are selectionprocesses specifically pertaining to jurisdictions that providefavorable environment for (i) financial products, and (ii)implementation of placing parts of a financial product into respectivejurisdictions. In this embodiment, one, the financial product isselected as life insurance policies in Opting (Block 604) on LifeInsurance Policies in Selected Jurisdiction where such Product can beissued with Minimal Regulatory Restriction; the choices being suchjurisdiction with minimum regulatory restriction on insurance policies(Block 322), life insurance policies (Block 324), health insurancepolicies (Block 326), annuity policies (Block 328), or non-insuranceproduct (Block 330). Then, among these jurisdictions, another selectionis done for a jurisdiction to minimize (Block 334) regulatory capitalrequirement for the selected financial product Two, a selection is madeof the jurisdiction (Block 348) where at least a portion of loaninterest is treated as an expense deduction. Preliminary to thisjurisdiction selection, a selection of Opting (Block 702) on Exercisinga policy Loan Provision of Said Financial Product from the alternativesof, the insurance policy value—as loan collateral (Block 354) or simplythe exercise (Block 352) of a policy loan provision. Selection three asfollows is dropped as a process in this particular embodiment. In thisembodiment, three, Block 706, Opting on at least one of saidJurisdictions where there Exists Excess of Insurance Policy Face amountover Policy Values and where at least a Portion of Contingent Benefitsare Taxed at a Lower Rate than the Tax Rate where Loan Interest inDeductible has been made; the selections are the jurisdiction (Block356) where the tax rate is lower than the tax rate of the jurisdictionwhere loan interest is a deduction; and the jurisdiction (Block 358)where there is tax deferral. The situation also looks into an excess ofinsurance policy face amounts over policy values. Four, a selection of ajurisdiction (Block 344) is made where at least a portion of the policyvalue build up is tax deferred. Again for this embodiment, a selectionhas been made on the usage of part of the financial product, that isCapitalizing, by a Contribution of Respective Excess of Policy faceAmounts over Policy Values, One of Said Parties, a Related Entity, inSaid One of the Jurisdictions 704. In summary, parts of the financialproduct used are insurance policy values, and excess of insurance policyface amounts over policy values; used for making loans orcapitalization; and in selected jurisdictions where loan interest is anexpense deduction; there is minimum regulatory restriction in issuanceof policies; there is minimum regulatory capital requirement for afinancial product; there is tax deferral of policy value build-up;portions of contingent benefits are tax deferred or taxed at lower ratesor not taxed. In Block 708, the above selections for this embodiment arechosen.

In FIGS. 19-24, and similarly in FIGS. 7-12, and in FIGS. 13-18, any andall of the selection processes in the above paragraphs can be used toprovide input to the Separating a Financial Product into Parts forPlacing in Respective Jurisdictions 210. The next steps are CalculatingRespective Valuations of Parts of Financial Product in RespectiveJurisdictions 212, then Generating Documentation to Carry-out theImplementation 214 and finally Producing an Accounting for a First PartyBuying the Financial Product from a Second Party 216 and Producing anAccounting for the First Party Carrying-out the Implementation Using theParts of the Financial Product in Respective Jurisdictions in RespectiveFinancial Transactions with Respective Other Parties 218.

The succeeding processes allow for Electronically Communicating to SaidParties (Block 364) Encrypted Billing and Transfers, includingelectronic Transfers and for Electronically Communicating over anInternet Network, thereby allowing for speed and accuracy in ProducingAccounting (Block 216-218).

Further to Generating Documentation to Carry-out the Implementation(Block 214), are Generating Historical Records for Said Parts, forValuations, Balance Sheet Activity and Profit & Loss Statements (Block368); Generating Standardized Documentation 370; Enabling Customizationof Said Standardized Documentation for Individual Transactions 372;Generating Illustrations 374; and Generating Contracts 376. Blocks368-378 complete the documentation processes.

Further to Calculating (Block 212) Respective Valuations of Parts arethree more calculating processes (Block 378-382) and subsequent trackingprocesses (Blocks 384-388). The Calculating processes are of Valuationsof the Parts for Respective Initial Placements (Block 378); of PeriodicRespective Valuations for the Parts after the Initial Placements (Block380); and of Respective Valuations for the Parts upon Occurrence of aContingent Event (Block 382). The Tracking processes are of SaidRespective Valuations after the Initial Placements (Block 384); for SaidParts, Balance Sheet Activity and Profit & Loss Statements; and ofConsolidated Balance Sheets and Profit & Loss Statements (Block 388).

All input data and data resulting from the logic processes are stored inthe computer with steps indicated in Blocks 220-226, 228, 230-236,394-396, 398, 400-452. These include input data (Blocks 220-226, 404);selected options on jurisdictions (Blocks 398, 438-452); parts of afinancial product (Block 298); documentations (Block 232, 406-414);accounting (Block 234-236,400-402); valuations (Block 230, 416-426);data templates and standards (Block 394-396); and other intermediateresults (Block 428-436).

The multi-jurisdictional system, specifically in the actuarial pricingsystem, includes a component that provides computer support forproducing illustrations of the implementation of alternative optimumcombinations of parts of the financial product, the respectivejurisdictions where the parts are placed and the respective parties thatthe First Party 2 transacts with.

These illustrations are based on the multi-jurisdictional use of theparts of the financial products; the terms, specifications, andfinancial assumptions inherent in the financial products themselves; andthe risks characteristics of the contractual exposures of the FirstParty 2. The illustrations allow all parties to evaluate on a projectionbasis the wide range of possible results of the implementations.

FIG. 25 illustrates a flow chart representing interrelated computersystems, such as involvement of the invertors' network of computersystems as well as all interested and involved parties, systems 802-820,to enumerate a few by way of example. These parties are first party,second party, third party, tax advisors, accounting advisors, marketingadvisors, legal advisors, Internet network, other consultants andregulatory bodies. FIG. 25 illustrates a flowchart representinginterrelated computer systems, though of course the implementation ofsome or all of the elements thereto will reflect the particularapplication desired. One such implementation can be viewed as a wholesystem of interrelated program codes that allows the implementation ofthe multi-jurisdictional approach to parts of a financial product. Animplementation can be carried out with one or more of the followingprogram codes that directs input/output of information among parties andprocessing related thereto, from the initial discussions, to the initialplacement and to the periodic processes to account for valuation resultsthat affect the parties involve; guidelines on jurisdictional research;information on related parties or possible non-related parties; pricingthe financial product; tailoring the pricing to the first party andspecifications pertaining to benefit provisions and other productparameters; program codes that provide instructions on placing the partsin respective jurisdictions for the jurisdiction where the whole productis purchased to the jurisdiction to which each part is placed; programcodes that provide instructions on maintaining accounting; reporting andmanaging the financial product and the placed parts and for therespective jurisdictions and parties; program codes that providesdocumentation; reporting; communications and not to forget illustrationsfor the initial marketing of the implementation; and program codes forcentral processing that includes the following data processing means;calculating means; generating means; accounting means; receiving means;underwriting means; pricing means; optimizing means; tracking means;implementation means; electronic communicating means; selecting means;selection means; and/or illustration means.

Reference is made to FIGS. 26 and 27. All the program codes can residein Block 52 or be distributed among other systems, using some or all ofthe foregoing, allowing for communications to and from computerscomprising Block 52, even in multiple jurisdictions. Block 52 canprovides in a program code basis the processes and means to implementplacing parts of a financial product into multi-jurisdictions, beingresponsive to financial objectives that are enhanced by respectivejurisdictions.

For example, encompassing program codes within the system can be such asblocks 902-918 for Data template means; Data processing means;Calculating means; Accounting means; Generating means; Tracking means;Electronic communications means; Optimizing means; and/or Underwritingmeans; as may be desired for a given application.

To exemplify how embodiments might be utilized, consider acomputer-aided method of accomplishing financial objectives, the methodincluding the steps of: inputting into a computer financial objectivesof a first party, jurisdictional information, specifications and pricingdata for a financial product; separating, with said computer, afinancial product into parts for placing in respective jurisdictions;calculating, with said computer, respective valuations of parts inrespective jurisdictions, using the jurisdictional information and thefinancial objectives, to identify an implementation; generatingdocumentation, with said computer, to carry out the implementation, thedocumentation including initial placement documentation and periodicdocumentation; producing an accounting, with said computer, of the firstparty buying the financial product from a second party; and producing anaccounting, with said computer, of the first party carrying out theimplementation using the parts of the financial product in therespective jurisdictions, in respective financial transactions, withrespective other parties, to accomplish financial objectives, wherein atleast some of the steps are carried out with the computer.

In such an embodiment, the step of receiving financial objectives mayinclude receiving at least one objective from the group includingpre-funding capital, funding benefit plan, minimizing expenses, andmaximizing earnings.

In any such an embodiment, the step of receiving specifications for afinancial product may include receiving respective characteristics ofrisks associated with contractual exposures; and further including thesteps of using said computer in underwriting said contractual exposures,optimizing product design and pay-outs, and formulating pricing of thefinancial product based on associated risks; and defining the financialproduct as a member of a group consisting of insurance policies, lifeinsurance policies, health insurance policies, annuity policies,corporate-owned fife insurance policies, and non-insurance products.

In any such an embodiment, there can further include the step ofselecting at least one of said jurisdictions to minimize one or more of:regulatory restriction on issuance of insurance policies; to minimizeregulatory restriction on issuance of life insurance policies, tominimize regulatory restriction on issuance of health insurancepolicies; to minimize regulatory capital requirements for the policies;and/or where at least a portion of policy value build up is taxdeferred, as may be desired in a given application.

In any such an embodiment, there can further include the steps of:collateralizing loans with respective insurance policy values; andselecting at least one of said jurisdictions where at least a portion ofloan interest is an expense deduction.

In any such an embodiment, there can further include the steps of:capitalizing, by a contribution of at least respective portions ofinsurance policies, one of said other parties; and

further including the step of selecting at least one of saidjurisdictions where at least a portion of contingent benefits are nottaxed.

In any such an embodiment, there can further include the steps of:capitalizing, by a contribution of at least respective portions ofinsurance policies, one of said other parties; and further include thestep of selecting at least one of said jurisdictions where at least aportion of contingent benefits are taxed at a rate lower than the taxrate in the jurisdiction where the loan interest is deductible.

In any such an embodiment, the step of capitalizing may be carried outwith the one of said parties being a non-related entity to the firstparty located in said one of the jurisdictions or with the one of saidparties being a related entity to the first party located in said one ofthe jurisdictions.

In any such an embodiment, the step of separating parts of saidfinancial product may be carried out with an annuity as the financialproduct; and further include the step of selecting at least one of saidjurisdictions to minimize regulatory restriction on issuance of annuitypolicies.

In any such an embodiment, the step of separating parts of saidfinancial product may be carried out with insurance as the financialproduct; and further include the step of selecting at least one of saidjurisdictions to minimize regulatory restriction on issuance ofinsurance policies.

In any such an embodiment, the step of separating parts of saidfinancial product may be carried out with a non-insurance product as thefinancial product; and further include the step of selecting at leastone of said jurisdictions to minimize regulatory restriction on issuanceof the non-insurance product.

In any such an embodiment, there can further include the steps of:exercising a policy loan provision of said financial product; andselecting at least one of said jurisdictions where at least a portion ofloan interest is an expense deduction.

In any such an embodiment, there can further include the steps ofcapitalizing, by a contribution of at least respective portions ofinsurance policies, one of said other parties; and

selecting at least one of said jurisdictions where there exists excessof insurance policy face amounts over policy values and where at least aportion of contingent benefits are not taxed.

In any such an embodiment, there can further include the steps of:capitalizing, by a contribution of at least respective portions ofinsurance policies, one of said other parties; selecting at least one ofsaid jurisdictions where at least a portion of loan interest is anexpense deduction; and selecting at least one of said jurisdictionswhere there exists excess of insurance policy face amounts over policyvalues and where at least a portion of contingent benefits are taxed ata rate lower than the tax rate in the jurisdiction where the loaninterest is deductible.

In any such an embodiment, there can further include the steps of:capitalizing, by a contribution of at least respective portions ofinsurance policies, one of said other parties; and

selecting at least one of said jurisdictions where there exists excessof insurance policy face amounts over policy values and where at least aportion of contingent benefits are tax deferred.

In any such an embodiment, there can further include the steps of:calculating valuations of the parts for respective initial placements;calculating periodic respective valuations for the parts after theinitial placements; calculating respective valuations for the parts uponoccurrence of a contingent event; tracking said respective valuationsafter the initial placements; tracking, respectively for said parts,balance sheet activity and profit and loss statements; and trackingconsolidated balance sheet activity and consolidated profit and lossstatements.

In any such an embodiment, the step of generating documentation mayinclude generating historical records respectively for said parts, forvaluations, balance sheet activity, and profit and loss statements, andalso includes forming a historical record, respectively, of consolidatedbalance sheet activity and profit and loss statements.

In any such an embodiment, the step of generating documentation mayinclude the steps of: generating standardized documentation; enablingcustomization of said standardized documentation for individualtransactions; generating illustrations; and generating contracts.

In any such an embodiment, the step of inputting specifications mayinclude: establishing data standards for said specifications; anddefining data templates for respective characteristics of risksassociated with contractual exposures for insurance products.

In any such an embodiment, there can further include the steps of:electronically communicating to said parties encrypted billing andtransfers, including electronic transfers.

In any such an embodiment, the step of electronically communicating maybe carried out by electronically communicating over an Internet network.

In any such an embodiment, there can further include the steps of:selecting at least one of said jurisdictions to minimize regulatorycapital requirements for the financial product; selecting at least oneof said jurisdictions where at least a portion of financial productvalue build up is tax deferred; selecting at least one of saidjurisdictions where at least a portion of loan interest is an expensededuction; selecting at least one of said jurisdictions where thereexists excess of financial product benefit amounts over product valuesand where at least a portion of contingent benefits are not taxed;exercising a policy loan provision of said financial product; andcapitalizing, by a contribution of at least respective portions offinancial product, one of said other parties.

In any such an embodiment, there can further include the steps of:selecting at least one of said jurisdictions to minimize regulatorycapital requirements for the financial product; selecting at least oneof said jurisdictions where at least a portion of financial productvalue build up is tax deferred; selecting at least one of saidjurisdictions where at least a portion of loan interest is an expensededuction; selecting at least one of said jurisdictions where thereexists excess of financial product benefit amounts over product valuesand where at least a portion of contingent benefits are taxed at a ratelower than the tax rate in the jurisdiction where the interest isdeductible; exercising a policy loan provision of said financialproduct; and capitalizing, by a contribution of at least respectiveportions of financial product, one of said other parties.

In any such an embodiment, there can further include the steps of:selecting at least one of said jurisdictions to minimize regulatorycapital requirements for the financial product; selecting at least oneof said jurisdictions where at least a portion of financial productvalue build up is tax deferred; selecting at least one of saidjurisdictions where at least a portion of loan interest is an expensededuction; selecting at least one of said jurisdictions where thereexists excess of financial product benefit amounts over product valuesand where at least a portion of contingent benefits are not taxed;collateralizing loans with respective financial product values; andcapitalizing, by a contribution of at least respective portions offinancial product, one of said other parties.

In any such an embodiment, there can further include the steps of:selecting at least one of said jurisdictions to minimize regulatorycapital requirements for the financial product; selecting at least oneof said jurisdictions where at least a portion of financial productvalue build up is tax deferred; selecting at least one of saidjurisdictions where at least a portion of loan interest is an expensededuction; selecting at least one of said jurisdictions where thereexists excess of financial product benefit amounts over product valuesand where at least a portion of contingent benefits are taxed at a ratelower than the tax rate in the jurisdiction where the interest isdeductible; collateralizing loans with respective financial productvalues; and capitalizing, by a contribution of at least respectiveportions of financial product, one of said other parties.

Although only a few exemplary embodiments have been described in detailabove, those skilled in the art will readily appreciate that manymodifications are possible in the exemplary embodiments withoutmaterially from the novel teachings and advantages herein. Accordingly,all such modifications are intended to be included within the scopedefined by claims. In the claims, means-plus-function claims areintended to cover the structures described herein as performing therecited function and not only structural equivalents, but alsoequivalent structures. Thus, although a nail and a screw may not bestructural equivalents in that a nail employs a cylindrical surface tosecure wooden parts together, whereas a screw employs a helical surface,in the environment fastening wooden parts, a nail and a screw may beequivalent structures.

1. Apparatus for controlling multi-jurisdictional investment, theapparatus comprising; a data processing means arranged for receivinginformation into a memory defining specifications for the financialproduct and pricing data for the financial product the data processingmeans further comprising: calculating means, responsive tojurisdictional data, for calculating respective valuations of parts ofthe financial product in respective jurisdictions in an implementationof the financial product; and generating means for generatingdocumentation for initial placement of the parts and to carry outimplementation of the parts of the financial product.
 2. The apparatusof claim 1, further including: accounting means for producing anaccounting of a first party buying the financial product from a secondparty; and accounting means for producing an accounting of the firstparty carrying out the implementation using the parts of the financialproduct in the respective jurisdictions in respective financialtransactions with respective other parties.
 3. The apparatus of claim 1,further including means for receiving respective characteristics ofrisks associated with contractual exposures from corporate-owned lifeinsurance coverage of individuals.
 4. The apparatus of claim 3, furtherincluding: underwriting means for underwriting said contractualexposures; and pricing means for formulating pricing of the financialproduct based on associated risk
 5. The apparatus of claim 3, furtherincluding: optimizing means for optimizing product design and pay-outs.6. The apparatus of claim 1, wherein the data processing means isadapted to receive information into the memory defining specificationsfor an annuity as the financial product.
 7. The apparatus of claim 1,wherein the data processing means is adapted to receive information intothe memory defining specifications for insurance as the financialproduct.
 8. The apparatus of claim 1, wherein the data processing meansis adapted to receive information into the memory definingspecifications for a non-insurance product as the financial product. 9.The apparatus of claim 3, further including calculating means forcalculating valuations of the parts for respective initial placementsfor the implementation.
 10. The apparatus of claim 3, further includingcalculating means for calculating periodic valuations of the parts afterinitial placements for the implementation.
 11. The apparatus of claim 3,further including calculating means for calculating respectivevaluations for the parts upon occurrence of a contingent event.
 12. Theapparatus of claim 3, further including tracking means for tracking saidrespective valuations of the parts after initial placements for theimplementation.
 13. The apparatus of claim 3, further including trackingmeans for tracking said respective said parts, balance sheet activity,and profit and loss statements.
 14. The apparatus of claim 3, furtherincluding tracking means for tracking consolidated balance sheetactivity and consolidated profit and loss statements.
 15. The apparatusof claim 1, further including generating means for generating historicalrecords respectively for said parts.
 16. The apparatus of claim 1,further including generating means for generating historical records forsaid parts respectively including valuations, balance sheet activity,and profit and loss statements, and historical records includingconsolidated balance sheet activity and consolidated profit and lossstatements.
 17. The apparatus of claim 1, wherein the generating meansis adapted to: generate standardized documentation and enablecustomization of said standardized documentation for individualtransactions.
 18. The apparatus of claim 1, wherein the generating meansis adapted to generate an illustration of the financial product.
 19. Theapparatus of claim 1, wherein the generating means is adapted togenerate an illustration of at least one of the parts of the financialproduct.
 20. The apparatus of claim 1, wherein the generating means isadapted to generate a contract for the financial product.
 21. Theapparatus of claim 1, wherein the specifications are provided as inputinto the data processor memory by means of data standards for saidspecifications, the standards set by at least one data template.
 22. Theapparatus of claim 1, wherein the data template is formed by datatemplate means for prompting input of respective characteristics ofrisks associated with contractual exposures for insurance products. 23.The apparatus of claim 1, further including: electronic communicationmeans for electronically communicating to said parties encrypted billingand transfers, including electronic transfers.
 24. The apparatus ofclaim 23, wherein said electronic communication means communicates overan Internet network.
 25. The apparatus of claim 1, further includingselecting means for selecting one of said jurisdictions.
 26. A computerprogram product having computer code stored thereon, which when run on acomputer causes the computer to perform the steps of: receivinginformation into a memory defining specifications for the financialproduct and pricing data for the financial product; the data processingmeans further comprising: calculating means, responsive tojurisdictional data, for calculating respective valuations of parts ofthe financial product in respective jurisdictions in an implementationof the financial product; generating means for generating documentationfor initial placement of the parts and to carry out implementation ofthe said parts of the financial product.
 27. The apparatus of claim 3,further including: selection means for selecting a jurisdiction where atleast a portion of loan interest is an expense deduction; andimplementation means for carrying out loan collateralizations withrespective insurance policy values.
 28. The apparatus of claim 3,further including: selection means for selecting a jurisdiction where atleast a portion of loan interest is an expense deduction; andimplementation means for carrying out exercise of policy loanprovisions.
 29. The apparatus of claim 3, further including: selectionmeans for selecting a jurisdiction where at least a portion ofcontingent benefits are tax deferred; and implementation means forcarrying out capitalization, by a contribution of at least respectiveportions of insurance policies.
 30. The apparatus of claim 3, furtherincluding: selection means for selecting a jurisdiction where at least aportion of contingent benefits are not taxed; and implementation meansfor carrying out capitalization, of a related or non-related party, by acontribution of at least respective portions of insurance policies. 31.The apparatus of claim 3, further including: selection means for:selecting a jurisdiction where at least a portion of loan interest is anexpense deduction; and selecting a jurisdiction where at least a portionof contingent benefits are taxed at a rate lower than the tax rate inthe jurisdiction where loan interest is deductible; and implementationmeans for carrying out capitalization, of a related or non-relatedparty, by a contribution of at least respective portions of insurancepolicies.
 32. The apparatus of claim 3, further including: selectionmeans for: selecting a jurisdiction where there is minimum regulatoryrequirement for issuing financial products; selecting a jurisdictionwhere there is minimum regulatory capital requirement for said financialproduct; selecting a jurisdiction where at least a portion of loaninterest is an expense deduction; selecting a financial product where atleast a portion of financial product value build up is tax deferred;selecting a jurisdiction where at least a portion of contingent benefitsare taxed at a rate lower than the tax rate in the jurisdiction whereloan interest is deductible; and implementation means for: carrying outloan collateralizations with respective insurance policy values; andcarrying out capitalization, of a related or non-related party, by acontribution of at least respective portions of insurance policies. 33.The apparatus of claim 3, further including: selection means for:selecting a jurisdiction where there is minimum regulatory requirementfor issuing financial products; selecting a jurisdiction where there isminimum regulatory capital requirement for said financial product;selecting a jurisdiction where at least a portion of loan interest is anexpense deduction; selecting a financial product where at least aportion of financial product value build up is tax deferred; selecting ajurisdiction where at least a portion of contingent benefits are taxedat a rate lower than the tax rate in the jurisdiction where loaninterest is deductible; and implementation means for: carrying outexercise of policy loan provisions; and carrying out capitalization, ofa related or non-related party, by a contribution of at least respectiveportions of insurance policies.
 34. Apparatus for controlling amulti-jurisdictional investment illustration, the apparatus comprising;a data processing means arranged for receive information into a memorydefining specifications for the financial product and pricing data forthe financial product, the data processing means further comprising:calculating means, responsive to jurisdictional data, for calculatingrespective valuations of parts of the financial product in respectivejurisdictions in an implementation of the financial product; andgenerating means for illustrating the financial product separated intoparts placed in respective jurisdictions.
 35. Apparatus for controllingmulti-jurisdictional investment parts, the apparatus including: acomputer system arranged to receive information and locate saidinformation into a memory, the information including investmentspecifications and pricing data for the financial product, the computersystem further including: means for receiving the information andconverting the information into signals; program control means forcalculating, from said signals, respective valuations of parts ofinvestment in respective jurisdictions; and program control means fortriggering printing documentation, including said valuations, to carryout the implementation of the parts in the respective jurisdictions. 36.The apparatus of claim 35, further including means for optimizingseparation of the parts from said investment.
 37. Apparatus forcontrolling placement of some but not all of a financial product in ajurisdiction, the apparatus including: a data processing means arrangedto receive information into a memory defining instructions for aninitial placement of some, but not all of the financial product in thejurisdiction, and to receive calculated values, the data processingmeans further comprising: generating means, responsive to the receivedcalculated values, for producing documentation for carrying out theinitial placement of said some but not all of the financial product. 38.A computer-readable media tangibly embodying a program of instructionsexecutable by a computer to perform the step of initiating an initialplacement of the parts of a financial product in respectivejurisdictions using data standardized for input by at least onecomputer-generated template and for output by standardized documentationobtained from computer-accessible memory.
 39. A computer-readable mediatangibly embodying a program of instructions executable by a computer toperform the steps of: separating a financial product into parts inrespective jurisdictions; calculating, responsive to inputjurisdictional data, respective valuations of the parts; and signalingfor placement of the parts including the valuations in the respectivejurisdictions.
 40. The media of claim 38, further including the stepsof: loading accounting data for transaction openings and closings of therespective parts; storing historical results for the parts in therespective jurisdictions; and storing consolidated results for thefinancial product.
 41. The media of any one of claims 38-40 wherein themedia comprises at least one of a RAM, a ROM, a disk, an ASIC, and aPROM.
 42. Apparatus for managing one of a plurality ofmulti-jurisdictional investment parts, the apparatus including: acomputer system arranged to receive information and locate saidinformation into a memory, the information including investmentspecifications and pricing data for the one part, the computer systemfurther including: program control means for periodically calculating aprice of the part, including a benefit value, using said specificationsand pricing data, to produce historical records; and program controlmeans for tracking the part by using the historical records.
 43. Anelectronic transmission apparatus for handling communications toimplement a part of a financial product in a multi-jurisdictionalinvestment, the apparatus including: program control means forcalculating benefit values attributable to the part being placed in ajurisdiction different from another part of the financial product;program control means for generating accounting for the part; programcontrol means for generating documentation for the part; and electronictransmission means for communicating at least one of said benefitvalues, said accounting, and said documentation over an Internet networkaddressed to another computer.
 44. An electronic transmission apparatusfor handling communications to implement a part of a financial productin a multi-jurisdictional investment, the apparatus including: programcontrol means for calculating benefit values attributable to the partbeing placed in a jurisdiction different from another part of thefinancial product; program control means for generating accounting forthe part; program control means for generating documentation for thepart; and electronic transmission means for communicating at least twoof said benefit values, said accounting, and said documentation over anInternet network addressed to another computer.
 45. The electronictransmission apparatus of any one of claims 38-39 further includingmeans for initiating an initial placement of the part of the financialproduct.
 46. Apparatus for executing one of a plurality ofmulti-jurisdictional investment parts, the apparatus including: acomputer system arranged to receive information and locate saidinformation into a memory, the information including instructions forinitiating an initial placement of the part, but not all, of thefinancial product in a jurisdiction; program control means forgenerating accounting for the part; and program control means forgenerating documentation for the part.
 47. Apparatus for carrying out animplementation of a multi-jurisdictional investment wherein part but notall is located in a jurisdiction, the apparatus including: a computersystem arranged to receive information and locate said information intoa memory, the information including instructions for the part, includingat least one of benefit values attributable to the part being placed inthe jurisdiction and accounting for the part; and program control means,responsive to the received information, for generating documentation forthe part.
 48. Apparatus for controlling multi-jurisdictional investmentparts, the apparatus including: a computer system arranged to receiveinformation and locate said information into a memory, the informationincluding investment specifications and pricing data for the financialproduct, the computer system further including: an input device forreceiving the information and converting the information into signals; aprogram control to compute, from said signals, for calculatingrespective valuations of parts of investment in respectivejurisdictions; and a program control to trigger printing documentation,including said valuations, to carry out the implementation of the partsin the respective jurisdictions.